What’s Next For Solana As Bulls Face Rejection At $25?
The Solana price has been trading extremely close to its immediate price ceiling of $25, and the coin has been struggling below the level above. SOL price moved smoothly from the $20 mark to $26, but the bulls got tired at $26, which caused the coin to dip 7.7% on the daily chart.
Over the last week, SOL has noted no considerable price movement. The technical outlook for SOL indicated that the price was inclining toward bullish momentum. Demand for the altcoin was still upbeat despite a downward movement in the buying strength.
Buyers still outnumber sellers on the chart. If demand remains consistently in the positive zone, the SOL might end up challenging the $26 mark. As Bitcoin travels into the $24,000 zone, altcoins can be expected to move upward.
If buying pressure notes a downtick further, the coin can fall in value before it jumps back above the $26 mark. The market capitalization of SOL increased, which meant that demand was on the upside for Solana.
Solana Price Analysis: One-Day Chart
SOL was trading at $23 at press time. The coin moved to the $26 mark, but the bulls gave up then. Since then, SOL has dropped below the $25 mark. Solana has to flip the resistance level into a support level; failing to do so, Solana might fall to the $20 level, as that was the altcoin’s nearest support line.
Overhead resistance for the coin stood at $26, allowing it to move close to $28. The amount of Solana traded in the last session was red, which indicated that the coin noted a fall in buying strength.
SOL has been in the overbought zone for some time now, and buyers continue to dominate the market despite a slight fall on the daily chart. The Relative Strength Index was at 60, and despite the downtick, the indicator displayed that buyers exceeded sellers in the market.
On that same note, the Solana price moved above the 20-Simple Moving Average line (SMA), which meant that buyers were driving the price momentum in the market. SOL was also above the 50-SMA (yellow) line, indicating that the altcoin was still bullish.
Demand and accumulation remained high on the chart, and the Chaikin Money Flow suggested the same. Chaikin Money Flow reads the capital inflows and outflows at a given time; the indicator was above the half-line, which meant that capital inflows were more than capital outflows.
The Moving Average Convergence Divergence (MACD) indicates the price momentum and trend reversals. MACD formed red signals tied to sell signals for the altcoin.
Featured Image From UnSplash, Charts From TradingView.com
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